iPower Announces Launch of New Joint Venture, Global Social Media LLC

Rhea-AI Summary

iPower Inc. (Nasdaq:IPW) announced a joint venture with a social media marketing company to create Global Social Media LLC, aimed at developing a social commerce platform. iPower will invest $100,000 for a 60% equity stake, leveraging the partners' social media expertise to enhance its brand visibility via TikTok and other channels. CEO Lawrence Tan emphasized the potential of social commerce and its alignment with iPower’s strategic goals for growth in the e-commerce industry.

Positive

• Investment of $100,000 for a 60% equity interest in Global Social Media LLC.
• Leverages social media expertise to enhance brand awareness and product reach.
• Participation in the fast-growing social commerce market.

Negative

• None.

Joint Venture to Provide Social Commerce Services Through TikTok and Other Media Platforms

DUARTE, Calif., Feb. 14, 2022 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq:IPW) (“iPower” or the “Company”), one of the leading online hydroponic equipment suppliers and retailers, has entered into a joint venture (“JV”) with certain individuals and a social media marketing and entertainment company to create a social commerce platform, Global Social Media LLC (“GSM”).

The Company’s JV partners bring a wealth of social media marketing expertise to the venture and iPower will provide its supply chain and e-commerce expertise, creating a fully end-to-end solution for brand manufacturers looking to sell their products via social channels. iPower also plans to leverage GSM for its own benefit in driving global brand and product awareness through TikTok and other media platforms. iPower will contribute $100,000 for a 60% equity interest in the JV, in accordance with the terms of the JV agreement.

“Social commerce is the fastest growing category in the e-commerce industry and we are keen to participate in that growth,” said iPower CEO Lawrence Tan. “Similar to our recently launched logistics joint venture, we have identified another low-cost opportunity to enter a new services category that can also benefit our own hydroponics business. Our partners will leverage their expertise in social media marketing to build a strategic network of global influencers that we can utilize to increase iPower’s brand awareness and geographic exposure. We look forward to growing this venture and our new line of services in 2022 and beyond.”

About iPower Inc.

iPower Inc. is one of the leading online retailers and suppliers of hydroponics equipment and accessories. iPower offers thousands of stock keeping units from its in-house brands as well as hundreds of other brands through its website, www.zenhydro.com, and its online platform partners. iPower has a diverse customer base that includes both commercial businesses and individuals. For more information, please visit iPower's website at https://ir.meetipower.com/.

Forward-Looking Statements

All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in iPower's registration statement and in its other filings with the SEC.

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
(720) 330-2829
IPW@elevate-ir.com

FAQ

What is the purpose of iPower's joint venture with Global Social Media LLC?

The joint venture aims to create a social commerce platform to enhance brand visibility and sales via social media.

How much is iPower investing in the joint venture with Global Social Media LLC?

iPower is investing $100,000 for a 60% equity stake in the joint venture.

What are the expected benefits of the joint venture for iPower?

iPower expects to leverage social media marketing expertise to boost brand awareness and reach new customers.

Which social media platforms will the joint venture focus on?

The joint venture will focus on platforms like TikTok and other media channels.

What is the significance of social commerce for iPower?

Social commerce is a rapidly growing segment of e-commerce, and iPower aims to capitalize on this trend for business growth.